Guy Carpenter, the reinsurance broking arm of Marsh & McLennan Companies, has announced the launch of its new probabilistic flood model for the Philippines.
The Philippines Flood Model provides countrywide coverage and enables insurers to assess exposure for one of the most common natural hazards in the region.
Guy Carpenter’s model is based on a 10,000-year stochastic catalogue that simulates flooding from both rivers and rainfall, including typhoon-induced precipitation.
It can produce event-loss tables, occurrence exceedance probability curves, and average annual losses at virtually any level of aggregation.
The model is powered by the open-source catastrophe modeling platform Oasis Loss Modelling Framework (Oasis LMF), and its outputs can be leveraged using Guy Carpenter’s MetaRisk platform to analyse reinsurance structures and for capital modelling.
“Guy Carpenter has long been a pioneer in flood modeling, one of the costliest but least quantified perils globally. Our Philippines model is the latest in a series of flood modeling tools developed to expand our risk management capabilities in Asia Pacific,” said Mark Weatherhead, Head of Model Development, Guy Carpenter.
Bengt Johnsen, Head of South East Asia and Korea Region, Guy Carpenter, also commented: “The Philippines have a long history of devastating flood events, and the combined impacts of climate change and rapid urbanization are aggravating the problem.”
“Our model provides clients with best-in-class capabilities to quantify flood risk and make informed business decisions, both for internal risk management purposes and for the placement of reinsurance,” Johnsen added.